I have this burning question regarding the art of rebalancing of share portfolio.

Some gurus suggested that we sell the loser shares and buy the winner shares. Theoretically, it makes sense. That is what I have been practicing. Bite the bullet and sell the loser and reinvest it into the already winning shares.

While other gurus suggested that we top up our investment when the counter has risen by 10%, sell out if it has dropped by 10%. Theoretically, it also makes sense. I can't say I follow it very strictly, sometimes the price is so volatile that I could not react at exactly 10%. It also depends on my available funds for investment.

Some gurus suggested that we lock in our gain by selling our winners and pick other value counters in hope that it will rebound like those winners that we once held. Honestly, I didn't really buy into that idea. Once in a while, I do sell my winners.

But I have a burning question. After several years of following such rules. I realised that there are 2 shares in my portfolio, occupying some 30+% and 20% respectively of my overall portfolio holding. These shares have multiplied leap and bound from the initial price that I have bought. And I kept adding to them along the way. Averaging up the price that I have bought them.

And the problem now has become quite serious, any movement, say 2% in either direction would very seriously distort my overall portfolio. I felt I need to divest a bit so that the overall portfolio does not depend too heavily on these two winning shares.

Those season investors, do you then sell your top performers and redistribute the weighting to the less performing shares? How do you do it?

it is bad for us. Trump's policy is to pull all manufacturing back to US. Good for the US's bottom of the hierarchy because there are more employment opportunity. But not good for US companies because the cost of production will go up. Just imagine iPhone 8 to cost RM 7K. Intel and Seagate, etc. all to hike up by another 30%. This is not good for all of us. Bear is coming back. Brace for hard recession.

MYEG is very light on asset and carries very little liability as well it is a true revenue generating machine. If you don't believe me, you can check and see that every year the revenue is going through exponential growth. Profit has grown leaaps and bounds over the years. If this is a normal and ordinary company, it would be a brilliant star. This company do not have any competitor and therefore no margin compression problem to worry about. The only issue is that this company is very politically connected. Suppose there is a change in government, this share will collapse. The share price get punished because people lose faith, people lose confidence in the present government. If you have the holding power, you should keep.

The November warrant is expiring soon. Some dark forces are trying to force the price down to make the warrant worthless.

smartyalek, but you refer to short sell kaki. how he shortsell? the only way i can think of is the put warrant. but this counter does not have put warrant as far as i know.

i am new. how to shortsell in malaysia? which broker allows that?

Why all the complications about these corporate actions?
Just invest in value generating companies.

Share split = increase liquidity (High time for BAT, NESTLE, DLADY to be splitted)
Share consolidate = decrease liquidity (High time for all the penny shares to be consolidated)
Bonus issue = Can't pay me by special dividend, bonus issue is fine too. They are fully paid up bonus shares that are injected into the circulation. EPS and DPS drops. Because the cake needs to be shared with the bonus issues that comes into circulation
Share buyback = Reduce number of share in circulation. Hence everyone have a bigger slice of the cake. Improves EPS, DPS. It is yummy. But hey, you don't know what to do with my money and instead spending the money on reducing the number of shares in circulation? I know what I can do with those money, I will invest them in other shares that can give me better return.

No extra values created through all these corporate actions. So, stop dreaming. Just move on and concentrate on investing in value generating companies.

AirAsia had a Private Placement earlier on this year. Despite the dilution, the PP was well accepted by the shareholders because it was the founder himself injecting fresh cash into the company. The final price of the new share issuance should come at a discount to the present traded price. Or otherwise it doesn't make sense for the new investor to buy a stake of the company at a price higher than the market rate. How much they trade will determine the floor of SCGM.

Agree with bsngpg, the EPS will take a hit because earnings now divided by more number of shares. DPS takes a hit too. ROE will take a hit because the equity portion has enlarged. This PP has the reverse effect of share buyback. In the short term, I view this PP thing as a negative thing. Over the long term, I believe SCGM will put the equity raised to good use, generating better return over time. Likely to happen over a long period of time because it takes time to build factories to produce higher output. With regards to the PP, we are talking about a short time frame, perhaps weeks, or months. i will wait it out, till all the dust settles, the PP completed then I come in again. The factories won't be ready yet, anyway.

I thought Private Placement is issuance of new shares to a selective few investors.

See http://www.investopedia.com/ask/answers/052815/how-does-private-placement-affect-share-price.asp

Boss selling to him would be considered Insider Trade, which by law he needs to file a disclosure.
But I might be wrong.

Thanks for pointing that out. Additional 10% shares comes into circulation. When do we apply price correction? I think I will come in when the placement is complete. I do not want my share to get diluted because of the private placement.

why private placement when right issues would have been a more obvious choice? There is no saying about how much they are trying to raise and how much our shares get diluted. Wished they can be more transparent about what they intend to do?

Any weakness in price is a great opportunity to add. I bought at RM 5.50, added more at RM 4.50, and added even more at RM 3.50. Development is coming to Sarawak. Being a major player in construction industry and the sole market supplier for concrete and construction material, CMSB stand to benefit from it. Just trust the management will be able to plug that leaky hole, they are not dumb.

Any weakness in price is a great opportunity to add. I bought at RM 5.50, added more at RM 4.50, and added even more at RM 3.50. Development is coming to Sarawak. Being a major player in construction industry and the sole market supplier for concrete and construction material, CMSB stand to benefit from it. Just trust the management will be able to plug that leaky hole, they are not dumb.